Poloniex is a specialized exchange where you can exchange between cryptocurrencies.
It allows you to trade with more than 80 cryptocurrencies.
It’s no secret that in the 80s Wall Street was spitting out millionaires, the stock markets were in full swing, a new rich man was born every day. Such was the glory of this era, that we still see films with references to that time, such as The Wolf of Wall Street, starring Leonardo DiCaprio. There were many lucky ones who managed to acquire large amounts of capital, but, of course, not by magic: there were several methods by which these people became millionaires, and one of them was speculation in the shares of the company, looking for profit in sales. In short. buy low, sell high.
In view of the above, with the growth of the cryptocurrency market and the variety of currencies that have been created, specialized exchanges have started to appear where you can exchange between cryptocurrencies, speculating between their prices in order to make a profit. Let’s get something straight: We do not promise that this practice will make you a millionaire overnightbut with a lot of effort and dedication you can get results.
After the explosion of the parent cryptocurrency, Bitcoin, in 2009 and its variations in the following years, the exchange market was latent, and it was at that time that specialized exchanges came into play, portals where we could not only exchange our cryptocurrencies for fiat currencies, but also allow us to play around a bit with the buy/sell prices to get dividends. That’s when it comes into play. Poloniexspecialized exchange that allows us they trade over 80 cryptocurrenciesoffering us an interface rich in graphs and tables of real-time operations, which give the user a better experience and confidence.
Poloniex is a very broad and complete platform when it comes to exchange. Therefore, in this tutorial, we will learn in a basic way how to perform the basic operations for its use.
Registration on Poloniex
To get started, the first thing we need to do is create an account on the platform. To do this, we will go to the main portal Poloniex.
Poloniex home page
Here we will click on the button «Create your account«, where the following form will open:
We will place our personal information there. Do not enter fictitious data because we will verify our account later, and if the name we provide does not match the name on our ID, we will not be able to complete the validation. We must also remember that the email we will provide must exist, because there we will be sent a link for subsequent email verification.
Once the registration is complete, the link will be sent to our email so that we can check it. After doing the latter, we’ll be ready to start exchanging cryptocurrencies, but first we need to verify our account. Poloniex allows us to transact without verifying our credentials, but with a limit of $2,000 in transactions daily; so if you need to manage a larger amount, the account must be validated.
To verify the validity, we will have to enter our account – in case you have logged out – by clicking on «Apply«, located below our create a new account button on the main page. After logging in, here’s what we’ll find:
Home screen after logging in to Poloniex
Later we will analyze what we see on the screen; For now, we will concentrate on validating our account. To get started, we’ll click on the icon shown below:
Icon to continue validation in Poloniex
After that, we will click on «My profile» which will bring us to:
Our profile validation page. The validation process can take up to 72 hours.
Here we have to fill in each field with our personal information, and in the options below we have to place 2 photos, one of the personal document and another close-up photo holding the personal document that we sent, together with a piece of paper on which we will write “Poloniex” and the date of the moment we took the photo, where both the document and our face are clearly visible. The portal offers some suggestions from is a connection.
Once this process is complete, we will go down and choose to accept the terms of service and then click on «Save profile«. It must be taken into account that this validation process is carried out manually, so we have to wait a maximum of 72 hours. Once the credentials are approved, we will be able to drive to maximum $25,000 per day.
Getting started with Poloniex
what are we watching?
First of all, we need to understand the interface we are looking at, so let’s go into the details part by part.
Sections in the Poloniex interface
In this section we will find coins available for exchange. In the upper tabs, we will choose which currency we have or the currency of origin, and in the list we will choose the one we want to exchange for. The meaning of each column is:
– A coin: the universal acronym of the cryptocurrency we want to exchange for.
– Price– refers to the lowest sales offer currently in the system. This example represents the price of 1 ETH in BTC.
– Volume: This reflects the amount of cryptocurrencies currently traded on the exchange.
– Change: the percentage increase or decrease in price in a 24-hour period.
– Name: the name of the original cryptocurrency platform.
These charts show the evolution of the cryptocurrency price in a certain period of time. This period can be modified in one of the options that appear at the bottom of this chart. The opaque gray bars below refer to the amount of cryptocurrencies processed at that time.
Here it is described: the first chart represents the last price in 24 hours, the second is the percentage change of the price, the third is the highest price of the last day and, finally, the lowest price. In the bottom field we will find the amount of cryptocurrencies processed at that moment.
More sections in the Poloniex interface
In this box we can make our purchase orders, by setting the quantity we want to buy and at the indicated price. It must be taken into account that if you want to perform a direct operation, that is, to perform a purchase at the price of another user’s sales offer, we must select it from the lists below; We’ll explain how later.
The stop limit is one of the features of Poloniex. There we can set a limit price in case of falling prices; If so, when the price exceeds our limit, the account will be closed automatically.
Just like shopping, sales has its own section. In this field we can place sell orders, where we will set a price in case we want to sell only when someone is willing to buy at that price, or we will choose an open order to buy from the field below.
4. and 5.
Here we find open buy and sell orders. When we make a direct purchase or sale, we have to click on one of these orders that matches the price and quantity of cryptocurrencies they offer.
This is a news section about the cryptocurrency we trade.
The latest parts of the Poloniex interface
In this table we see the depth of the market, i.e. the more orders there are for the deeper the price.
Here you will see the history of transactions made with this cryptocurrency in real time. If we click on «My stores» we can see our history.
From here we can see our open buy/sell orders and in this same table we can edit or cancel our orders.
Loading assets on Poloniex
We will need capital to start trading. For that we need to make a deposit to our Poloniex account from our personal wallet. These deposits can be in any cryptocurrency managed by Poloniex. To go to the deposit window we must click on the menu «Balance» and then to «Deposits and withdrawals«. which will take us to the next window.
Table of all cryptocurrencies supported by Poloniex. Sometimes some may not be available for deposits and withdrawals.
Here we will see the list of cryptocurrencies that Poloniex supports. Then we just need to look for the cryptocurrency we want to deposit, and we will click on the last column in «Deposit«, which will generate the address to which we will send our funds. It is important to emphasize that Each time you make a payment, these steps must be performed to generate a new addressbecause if we send to the old address we may lose our funds and Poloniex is not responsible for losing money in this kind of cases.
When the shipment is completed and confirmed, we can see it in the upper bar that measures the amount of money, as well as in the history that we can access from «Balance» from the main menu.
Now with money in our account we can start the exchange.
Creating buy and sell orders with Poloniex
To start the exchange, we need to position ourselves at «Exchange» in the top menu.
The main page of «Exchange».
The first thing we have to do is choose the cryptocurrency we want to exchange for; In our case we will choose Ethereum. After that we go to the shopping section to open a new order. If we want to make a direct purchase, we will only choose from some of the open orders in the list below: when you choose it, it will automatically be loaded into our shopping box, the only thing we have to vary is the quantity you want to buy, clearly the amount that seller offers.
Buy and sell orders on Poloniex
After the information is confirmed, we will click on «Buy» and the account will remain open. If it is a direct purchase, it will be confirmed immediately. We can see our open orders from the list at the bottom of the page or from the top menu by clicking on «Commands» and then to «Open accounts«.
Now is the time to sell. To do this, we need to position ourselves on the sales pitch «Sell» and do the same purchase procedure. In the case of direct sales, we will select an order from the table below; In case we want to sell at a fixed price, we just have to put it in our box. If we want to sell all the cryptocurrencies we have, we just need to click on the amount that appears above the box of the amount of currencies we have and it will be loaded into the corresponding field; The same goes for the price.
Once this is done, we will click on «Sell» to open an account, or execute a direct selling order that we specify.
After completing the transactions, it’s time to withdraw the funds. To do this, we will go to the same section as when we deposited the funds, «Balance“, and then “Deposits & Withdrawals«. Here we will look for the cryptocurrency we want to withdraw, for this example bitcoin, and after that we will click on «withdraw«, which will open the following.
To deposit the total amount of our available funds, we can click on the amount at the top of the field and it will be automatically set.
We need to enter the destination address and the amount. If we click on the amount that appears above the text boxes, the maximum amount of that currency that we have in our account will be automatically added. Then we’ll click on «To back off«. An e-mail from Poloniex will be sent to us with a link asking us to confirm the transaction by accessing the link provided in the e-mail, and when we open it it will show that the transaction has been completed successfully.
This exchange can be a little intimidating at first because of its complex interface full of tables and graphs, but it all takes practice. It should also be noted that Poloniex does not currently operate in New Hampshire or Washington, and has recently changed its terms and conditions; text that should be read carefully before accessing the platform.